So, the Microsoft announcement - taking place as I write this, 01:45 in my timezone - turns out to be a bigger deal than expected. Microsoft just announced it's going full-on hardware - the company announced a new tablet called 'Surface', and boy, is this thing something to behold. Microsoft's hardware partners? They're not happy right now. Update: Here's Microsoft's official Surface site. I believe someone coined the phrase 'sexy as a succubus' in the comments about Vizio? Stealin' it! Update II: They aren't just taking the iPad head-on - this is a straight-up MacBook Air competitor.

I was just floored by this - didn't see it coming at all. That is some sexy damn hardware! My Initial thoughts:

1. How the hell did Microsoft keep such a secret so well??? This is new territory for them - really, they must have hired some new people to run their skunkworks or something... Historically something this big would have leaked about 5 minutes after they thought of dong it.

2. They are using nVidia's core for the ARM version, I assume that means it is a Tegra 3. It should be pretty damn snappy. And then there is one with an Ivy Bridge... Even if they clock it down to like 1.2Ghz or something it will easily eat any ARM core for lunch. So they are essentially making an iPad and a Macbook Air competitor with a single product line.

3. This will be the first non-iPad tablet on the market than can be legitimately priced to compete with Apple on fairly equal terms, as opposed to having to undercut them to get traction. I would wager the entry level ARM version will be $499 - in fact I would say they need to price it exactly the same as the entry level iPad - the symbolism is too important to ignore. If they give it any price other than $499 (in either direction) whoever is responsible needs to be publicly flogged for stupidity.

4. The touch cover.... Tip of the hat to whoever thought that one up. A tablet with what is almost a zero-footprint keyboard. Genius.

5. Microsoft has managed to get half the internet talking about this thing like it was a new Apple product... That in itself is definitely a sign of things starting to get interesting to say the least.

Welcome back to the game Microsoft, we missed you the last few years...